Rupee drops 4 paise to 79.87/US dollar in early trading

On Tuesday, the rupee rose 1 paisa to settle at 79.83 against the dollar.

The dollar index, which measures the dollar’s strength against a basket of six currencies, rose 0.11% to 108.74.

The dollar is supported by aggressive comments from Minneapolis Federal Reserve Bank President Neel Kashkari who said his biggest fear is that the US central bank misinterprets magnitude and ongoing price pressures and will have to implement even more aggressive rate hikes to keep inflation under control, he said. Sriram IyerSenior Research Analyst at Reliance Effects.

Iyer added that most Asian and emerging markets remained weak Wednesday morning and could weigh on sentiment.

Meanwhile, the global oil benchmark Brent oil futures fell 0.46 percent to $99.76 a barrel.

On the domestic stock market front, the 30 shares Sensex traded 141.45 points or 0.24 percent lower at 58,889.85, while the broader NSE Nifty fell 50.15 points or 0.29 percent to 17,527.35.

Foreign institutional investors became net buyers in the capital market on Tuesday when they bought shares worth Rs 563.00 crore, according to stock market data.

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